Without financial intervention in the real estate market, there would be almost no transactions, as almost nobody could afford to save up enough money for such a large one time purchase. Real estate finance is a broad term but relates to the way in which buildings and properties are acquired and funded. There are many ways to be involved one of which is being an investor. The real estate finance sector depends on the constant flow of money into the system by investors looking for a good return. These investors come in the way of personal savers, commercial banks, REITs, pension plans, and life insurance companies. It is a capital intensive market that our economy greatly depends on, hence the government regulations that have been imposed since the thirties. It can be a very profitable sector but it take very specialized knowledge and risk taking personality to jump into the market to earn superior returns. The market went to rock bottom levels in the late two thousands but it is beginning to see positive movements now that the recovery effort is in place. When the real estate finance market fails, there will be many foreclosures on properties that become the property of lenders who don't necessarily want to hold them. These lenders want back the investment they put in so they will try to sell them through a foreclosure sale. This process again requires specialized knowledge but allows people the chance to acquire property cheaply and allows the financial market to continue without complete losses. http://realestate.aol.com/blog/2008/09/10/how-to-finance-foreclosure-properties
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